The "Made In America" movement is getting headlines again: 'Made In America' Revival Gathers Pace
Too little? Too late? or anti-globalist?
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And the original, written by Willie Dixon and performed by Sonny Boy Williamson II:
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Wednesday, September 25, 2013
Wednesday, July 31, 2013
Another Problem for the CH Brain
A guest post by bagoh20.
Let's say there is a man who has a profitable company. Upon his death, he wishes the company to be transferred to at least some of the long term employees. He would prefer that it continue to employ people and support its customers and vendors, but secondarily it could be sold and the proceeds divided among the employees based on seniority.
The problem:
1) Depending on the law at the time, the tax burden of a transfer of ownership could be enormous and enough to make the new owners insolvent, and thereby prevent it from continuing.
2) It will be impossible to sell it for what it’s worth, because the proceeds passed to the employees would be sufficient for most of them to quit their jobs, and the value of the company is closely tied to the employees. The real value of the company is their ability to produce a profit. If they are leaving, nobody will be buying.
It’s a catch 22. Maybe I'm alone on this, but this post forced me to finally know the origin of that term after pretending to my whole life.
“The term catch-22 was coined by Joseph Heller in his novel Catch-22. Initially this is based on the explanation of the character Doc Daneeka as to why any pilot requesting a psych evaluation hoping to be found not sane enough to fly, and thereby escape dangerous missions, would thereby demonstrate his sanity:” ~ Wikipedia
So:
1) Is there a way to avoid the pitfalls above?
2) If you were a key employee, middle aged, and likely to inherit this, what would you want to happen?
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